Friday, July 31, 2015

SCFRA entitles the Department of Corrections to a percentage of specific assets a prison inmate possesses.

The SCFRA entitles the plaintiff to a percentage of specific assets defendant possesses. People v Houston, 237 Mich App 707, 716 (1999). The court must issue an order to show cause when the attorney general files a complaint, MCL 800.404(2); at the time of the hearing on the complaint the court must issue an order requiring the appropriate person to remit the assets if it appears that the prisoner has any assets that ought to be subject to the claim, MCL 800.404(3); at the hearing on the complaint and before entering an order, the court must take into consideration any legal obligation of the defendant regarding spousal or child support or other moral obligation to support dependents, MCL 800.404(5), and; “[i]f, in the opinion of the court, the assets of the prisoner are sufficient to pay the costs of the proceedings under this act, the assets shall be liable for those costs upon order of the court” MCL 800.404(7).

MCL 800.403 provides: (1) The attorney general shall investigate or cause to be investigated all reports furnished under section 2. (2) If the attorney general upon completing the investigation under subsection (1) has good cause to believe that a prisoner has sufficient assets to recover not less than 10% of the estimated cost of care of the prisoner or 10% of the estimated cost of care of the prisoner for 2 years, whichever is less, the attorney general shall seek to secure reimbursement for the expense of the state of Michigan for the cost of care of that prisoner. (3) Not more than 90% of the value of the assets of the prisoner may be used for purposes of securing costs and reimbursement under this act.

MCL 800.404 provides: (1) The circuit court shall have exclusive jurisdiction over all proceedings under this act. The attorney general may file a complaint in the circuit court for the county from which a prisoner was sentenced, stating that the person is or has been a prisoner in a state correctional facility, that there is good cause to believe that the prisoner has assets, and praying that the assets be used to reimburse the state for the expenses incurred or to be incurred, or both, by the state for the cost of care of the person as a prisoner. (2) Upon the filing of the complaint under subsection (1), the court shall issue an order to show cause why the prayer of the complainant should not be granted. . . . (3) At the time of the hearing on the complaint and order, if it appears that the prisoner has any assets which ought to be subjected to the claim of the state under this act, the court shall issue an order requiring any person, corporation, or other legal entity possessed or having custody of those assets to appropriate and apply the assets or a portion thereof toward reimbursing the state as provided for under this act. (4) The amount of reimbursement under this act shall not be in excess of the per capita cost of care for maintaining prisoners in the state correctional facility in which the prisoner is housed. (5) At the hearing on the complaint and order and before entering any order on behalf of the state against the defendant, the court shall take into consideration any legal obligation of the defendant to support a spouse, minor children, or other dependents and any moral obligation to support dependents to whom the defendant is providing or has in fact provided support. (6) If the person, corporation, or other legal entity shall neglect or refuse to comply with an order under subsection (3), the court shall order the person, corporation, or other legal entity to appear before the court at such time as the court may direct and to show cause why the person, corporation, or other legal entity should not be considered in contempt of court. (7) If, in the opinion of the court, the assets of the prisoner are sufficient to pay the cost of the proceedings under this act, the assets shall be liable for those costs upon order of the court. (8) The state may recover the expenses incurred or to be incurred, or both, by the state for the cost of care of the prisoner during the entire period or periods, the person is a prisoner in a state correctional facility. The state may commence proceedings under this act until the prisoner has been finally discharged on the sentence and is no longer under the jurisdiction of the department.


IRAs are specifically exempted from ERISA, and are not subject to ERISA’s anti-alienation provision, 29 USC 1056(d)(1). 

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